Whether you are brand new to Bitcoin
or you've been here for a while, there's always new lessons to learn. A lot of times, people who come into
the fast-paced world of cryptocurrency feel like their head is swimming in a vast sea
of unknowns and complicated concepts. There's no simple guidebook
that shows you how to do this. Let's be for real here. You are most likely here because
you want to make money in cryptocurrency. And the safest and most surefire bet
to do that with is the oldest crypto, Bitcoin. I'm going to explain to you why this
still stands true despite the fact there's a lot of noise about other cryptocurrencies. Mostly coming from me,
but that's another story.
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In this video, we're going to be looking
at the basics of investing in Bitcoin. We'll be covering four simple questions. What is Bitcoin? Is it too late to invest in Bitcoin? Why is Bitcoin the best crypto investment? And lastly, how to invest in Bitcoin. Then at the end of this video, we're going to be looking at the best way you can
generate life-changing wealth with Bitcoin. So make sure to watch this video all the way
through to get the best information.
Now, let's start with this. What is Bitcoin? Before we talk about investing in Bitcoin,
we have to understand what Bitcoin is. And I'm going to tell you some things here
that you will pretty much only get on this channel. You see, I invested in Bitcoin way back in 2012. I went full time in cryptocurrency early in January 2018. So a lot of financial YouTubers are now
moving over to crypto because it's popular. They lack the true understanding
of this space's ins and outs to be able to break it down
in the best possible terms. Because let's face it, guys.
Those people are watching our videos. Graham, Andrei, Sheldon, why you guys holding out? Come on the channel and let's talk. But I digress. You will hear almost everyone to a tee
say that Bitcoin is a digital currency. That's the standard company line. It ain't a currency. Same way gold isn't a currency. Now, you could go into a car dealership with
a few gold bars and maybe trade it for a ride, but it ain't gonna be the dealership's first choice.
They want currency, not an asset. Bitcoin is a digital asset. Think of it like a stock, a bond, gold, oil shares, etc. But it's a special kind of asset
called a store of value. You can take money, put it into Bitcoin and hypothetically,
it should maintain a level of value. The volatility of Bitcoin,
which we'll talk about later, can make this a tricky proposition
because I'm sure as you've heard, the price goes way up and way down. You don't see these types of swings
with most store of value assets. It wasn't always this way with Bitcoin though. It was spurred out of the 2008 financial crisis. An anonymous person dubbed Satoshi Nakamoto
penned what we now know as the Bitcoin whitepaper.
That's a fancy way to say a guy wrote a paper
describing a new currency he wanted to create. The title was "Bitcoin: A Peer-to-Peer
Electronic Cash System". The original intention of Bitcoin was for it to be
a currency we could all send directly to each other without the need of a third party
like a bank or a credit card processor. It was time to do something different than
"the way it was always done before". This would be a decentralized currency ran
on something called blockchain technology. No one party or entity could have access
to make changes to the network, meaning it would be extremely
secure and private.
But over time,
Bitcoin has morphed into something else. While it's definitely still decentralized,
it's no longer private. Companies like Chainalysis have discovered
ways of tracking transactions. And the dream of being electronic cash is over,
in my opinion. Why? Well, I got a friend who bought a mattress back
in 2014 for a couple thousand dollars. He bought it on Overstock.com, which was one of the first online
retailers to accept Bitcoin, so he paid in BTC. Right now, the Bitcoin he spent on the mattress
is worth almost a million dollars. He may wake up in the mornings
feeling like a million bucks, but he could have been waking up
feeling on a million bucks. And she real thick though. Point being, people realize today that Bitcoin
works best when they hold it, not spend it. And that volatility is not likely
to change anytime soon. Bitcoin has become the modern version of gold. Digital gold, as we call it.
But unlike gold, there's a known finite supply. Part of the secret recipe for Bitcoin's success has been
the fact there are only 18.6 million of them in circulation, and there will ever only be 21 million coins. And they won't all make it into
the circulating supply until 2140, 120 years from now. Of course, new coins come into the supply
through what we call Bitcoin mining. It's basically specially designed computers
solving hard math problems in order to earn fractions of a Bitcoin. With gold, while, of course, literally
there is a finite supply in the universe, we have no idea what that is. There could be thousands of tons of gold
under the sea floor, and we know that there are millions,
if not billions, of tons of gold floating around in our own solar system,
much less the universe.
Space mining is coming eventually. But with Bitcoin,
not only do we know the supply, we also know the schedule
at which it comes into the supply. The fact is we've never seen an asset
in the history of mankind that was specially designed to be
the optimum form of money on the planet. And while the value proposition of Bitcoin has
changed from money to a store of value, the same thing rings true. This is the greatest asset we've ever seen
in the history of the world. But the question is have you missed
the boat on Bitcoin? In a sense, yes. In a sense, no. Let's get one thing out of the way here. Bitcoin is the greatest appreciating asset in history. It's made over 100,000% gains since 2011. The actual overall gains can't even really be calculated. I mean, at one time,
you get four Bitcoin for a penny. It's like the stories your grandpa used to tell, except for instead of four cans
of chewing tobacco for a nickel, it was four Bitcoin for a penny.
Hard to even process that. Bitcoin basically broke the investment paradigm. In the last three years alone, it's up 421%,. Nothing to shake a stick at. If you enjoy shaking sticks, that is. So, while the opportunity at the absolute
largest gains in world history may be over, Bitcoin still offers you better investment opportunities
than anything on the stocks or bonds market. But think about this. As of this week, literally any person ever
who's invested in Bitcoin is in profit. Process that. And yes, the price is pretty high
at $50,000 right now, but for most of us in crypto full time, we believe the price is going to be a minimum
six figures by the end of this year. I believe closer to $300,000. But, of course, that's not financial advice. But I do believe it. Still a long ways to go from that. One thing though you have to understand
about Bitcoin is that it goes in cycles. So, even if you buy it now and it goes down,
as long as you don't sell at a loss, history has shown that it will
continue climbing much higher.
Honestly, I'm starting to believe that if companies,
governments and investment funds continue adopting Bitcoin that in 10 to 20 years, we could be
looking at a $10 million-Bitcoin. Having the opportunity to own one Bitcoin can bring
generation-changing wealth in the future. Only the truly elite will own one full Bitcoin. You may have heard of other cryptocurrencies, such as Ethereum, Chainlink, Cardano,
XRP, Bitcoin Cash or others. These are what we call altcoins,
or any coin other than Bitcoin. To be totally honest with you,
my personal portfolio is loaded down with altcoins, and I talk about them a lot on this channel. But I'm not what we call a risk averse person. In fact, I've been called a lowdown
gambling degenerate in my life.
By myself. In the mirror. After a tough night of roulette. Aren't they all tough? But I don't mind casting my financial
future into the hands of fate. I like to live dangerously. That's why I love altcoins. They offer much more reward than Bitcoin,
but they also boast much more risk than Bitcoin. And this is where the volatility
of Bitcoin really shines. You see, we like volatility in crypto.
It's what gives us life-changing money. But some people simply cannot handle that risk. Bitcoin plays out pretty much the same way
every four years though. It's based on something we call the Bitcoin halving.
This is where the amount of Bitcoin
produced through mining gets cut in half. In the beginning,
there were 50 Bitcoin produced per block mined. In 2012, it cut down to 25 BTC. Then in 2016, to 12.5 BTC. Then most recently,
on May 11, 2020, the Bitcoin halving dropped the amount
to 6.25 BTC per block. That equals about 900 Bitcoin per day
currently produced. In 2024, that will be cut to
about 450 Bitcoin per day. By the last Bitcoin cycle in 2136 to 2140, there will only be one-half of
one Bitcoin produced total! So the supply and demand principles of the Bitcoin
halvings scheduled every 200,000 blocks means the value proposition of Bitcoin should
continue to increase following those halving events. The only thing is about a year and a half after
the halving when Bitcoin investing is at its peak, the supply shock of the halving wears off,
and the price starts dropping. The retail frenzy ends. People start selling off their Bitcoin,
plummeting the price. These are the types of things
you need to know as an investor. Bitcoin drops an average of 85-87%
every bear market.
Every four years. The current Bitcoin bull run
according to the historical Bitcoin cycles should end around September or October of 2021. So you need to be prepared. You can do as the kids say
and HODL through the bear market, which lasts about two years, or sell at the top, like the smart kids, and wait for prices to drop to buy more
for the next Bitcoin bull run in 2024. But this cycle could be different because of companies
like MicroStrategy, Tesla and PayPal. These companies have bought tons of Bitcoin
and will not sell it in the bear market. So we could see a less volatile drop,
maybe 60% instead of 87%. But other cryptocurrencies, the altcoins, don't have that same level of corporate
and institutional buying happening. Ethereum, the No. 2 overall cryptocurrency,
certainly does have some level of institutional buying, but virtually none of the coins below it do. On average, altcoins drop 95% in a bear market. Sometimes 99%. So the point is while the rewards of being
early on some other coins are very high, the risk of losing almost everything is guaranteed unless you sell at the right time. The volatility to the downside is really what
separates Bitcoin from other cryptocurrencies and makes it the "safest" bet.
So you've heard my elevator pitch
for Bitcoin along with the warnings, and you still want to get in. How do you do it? There are basically three ways
you can buy Bitcoin as an investment, but one is much better than the others. The best way to buy Bitcoin is to buy it
directly on a site or exchange where you have the opportunity
to own your own asset, not let it sit in the hands of others.
The two places I suggest buying Bitcoin from
directly for United States citizens are Binance US and Coinbase. Both of these sites can be found
on bitboycrypto.com/deals along with many other great
trading tools and offers. With Coinbase and Binance US, you can buy Bitcoin directly with your debit card,
credit card or bank account. While your Bitcoin is held on the exchange, you also have the option to withdraw it
to what we call a Bitcoin wallet. This can be a hot wallet,
which is an online web-based wallet, or a cold storage wallet. These are mostly USB hardware devices,
but there are a few other types like paper wallets.
You can actually find the best hardware wallet,
Ledger, on the deals page on my website as well. But to summarize,
owning your own Bitcoin is important. But a second way to invest in Bitcoin
is through third party apps and sites like Robinhood and PayPal. By investing in Bitcoin and through these places, you're basically investing
in a derivative version of Bitcoin. You own them on paper,
but you cannot withdraw these assets. So you make money on the gains or lose money
on the downward moves of Bitcoin, but you cannot ever move
your Bitcoin somewhere else. This is probably the worst way to invest in Bitcoin
because you have zero ownership. Now, a third way to invest in Bitcoin is through
the Grayscale Bitcoin Trust on the stock market. The ticker is GBTC. And each share of the stock is backed
by physical Bitcoin that Grayscale owns. And by physical, we simply mean Grayscale
actually owns the Bitcoin behind their shares.
There, of course, is no such thing
as a literal physical Bitcoin. When we say physical Bitcoin,
this is in contrast to paper Bitcoin, such as the derivative type
we highlighted a few moments ago. But in my opinion, investing in the Bitcoin stock
is a great way for traditional investors to get into Bitcoin and crypto. From the crypto enthusiast's perspective, these types of investment vehicles
are bridges to get investors to a place where they understand the potential of crypto.
This leads them to study more of it, and many end up realizing the importance
of owning their own Bitcoin by watching channels like mine. So we've covered what Bitcoin is, whether or not it's too late to invest, what makes it safer than other cryptocurrencies and how to invest in it. But how can you invest in Bitcoin
and make life-changing wealth? Retirement money, if you will. The key is to remember the Bitcoin cycles. This bull run will come to an end. And when it does, if you follow the advice on this channel,
we will help you to understand when it is time to move out of the markets
and into what we call stablecoins.
These are coins where the price is stable no matter
what the direction of the overall crypto market is. Another option is you can move into other
assets like cash, gold or stocks while the Bitcoin market drops and consolidates. This will allow you to pick new entry points
and you could go from owning one Bitcoin to possibly owning 5 to 10 Bitcoin
if you time it right. When the next bull run comes around in 2024,
you could be poised to change your financial future. Not just for you, for your kids and your kids' kids. But let me know if you would like
more beginner-friendly content by smashing that like button. In addition, drop some suggestions
down below in the comment section what other topics you'd like me to cover. That's all I got. Be blessed. BitBoy out..